Partly Cloudy

Partly Cloudy

max temp: 17°C

min temp: 10°C

ESTD 1874 Search

WIN A NEW HYUNDAI i10 - See the EADT on June 8 for full details

Stansted: Ryanair lifts profits guidance after strong demand over Christmas

09:15 28 January 2013

A Ryanair aircraft at Stansted Airport

A Ryanair aircraft at Stansted Airport

Archant

LOW-cost airline Ryanair gave another boost to its profits guidance today after benefiting from strong demand for pre-Christmas flights.

shares

The Dublin-based carrier, which is a major operator out of Stansted Airport, said bookings from passengers in the UK, Germany and Scandinavia were particularly robust as revenues rose 15% to 969million euros (£825m) in the three months to December 31.

It now expects profits of around 540m euros (£460m) in the year to March, which would represent a 7% increase on last year’s performance despite a 19% rise in oil costs.

Ryanair also increased its full-year profits guidance in November to between 490m and 520m euros (£417m to £442m), up from 400m to 440m euros previously forecast.

Quarterly passenger numbers increased by 3% to 17.3m during the third quarter, while an 8% rise in average fares meant profits for the period grew by 21% to 18.1m euros (£15.4m).

The airline has grounded up to 80 aircraft this winter, blaming a combination of high oil prices, the level of airport fees at Stansted and Dublin airports and expectations for seasonally weaker demand.

As a result, it expects traffic will be 3% lower in the current quarter, which is equivalent to a decline of around 400,000 in passenger numbers.

Ryanair opened its 51st base in Maastricht in December and will open six more from April in Eindhoven, Krakow, Zadar in Croatia, Chania in Greece and Marrakesh and Fez in Morocco.

It said significant capacity cuts by other carriers would also offer it growth opportunities across Europe.

The company added: “We expect further capacity cuts and restructurings in Europe as high fare, loss making carriers struggle to compete with Ryanair’s expansion at low prices.”

Despite the tough market conditions, analysts at Panmure Gordon stockbrokers said the cuts in capacity growth and higher competitor fares should translate into “attractive and sustainable” profits growth for Ryanair.

Analyst Gert Zonneveld described the third quarter performance as excellent and said Panmure continued to hold a buy recommendation on Ryanair.

shares

0 comments

The new Escape lounge at Stansted Airport.

A new business lounge at Stansted Airport has been used by more than 9,000 visitors in its first month.

Rooney Anand, chief executive of Greene King.

Proposals from pubs and brewing company Greene King designed to address concerns over its agreed acquisition of the Spirit Pub Company look set to be backed by the UK’s competition authority.

Peter Bennell of Haven Power.

Haven Power, the specialist supplier of electricity to UK businesses, has signed a deal with Thames Water worth more than £500million over the next five years.

Retail sales are

Retail sales are “bounding ahead” as falling prices and a boost to consumer spending power is giving retailers the most upbeat outlook for 27 years, according to new figures.

A Ryanair passenger plane after take off from Stansted Airport.

Budget airline Ryanair saw profits growth take off last year as a revamp designed to improve its image and attract business customers sent earnings soaring by 66%.

The New Anglia Growth Hub team, including its business growth advisers who offer free support to businesses in Suffolk and Norfolk.

New Anglia Growth Hub has beaten its target of providing support for 3,000 businesses in its first year.

Andrew Rowe, managing director of Concertus.

Andrew Rowe, managing director at Ipswich based Concertus Design & Property Consultants, has been appointed as finance director for SPACES, the new society that has been formed from a merger between SCALA (Society for Construction and Architecture in Local Authorities) and SCEME (Society of Electrical and Mechanical Engineers serving Local Government).

Greene King apprentice Tamara-Leigh Kirkham.

Greene King has been named VQ Large Employer of the Year for 2015, in recognition of its support for members of its workforce undertaking vocational qualifications (VQs).

Sizewell A and B

Staff at the redundant Sizewell A nuclear power station will have to wait to find out if their jobs are safe from planned redundancies.

The opening of Precision Marketing's new headquarters in Bury St Edmunds.

An expanding marketing services firm celebrated the official opening of its new head office in Bury St Edmunds yesterday.

Most read

Most commented

Topic pages